Forex
Home›Forex›Major Pairs›USD/CAD slips as Canada retaliates with tariff measures
USD/CAD slips as Canada retaliates with tariff measures
Canada announced retaliatory tariffs on about 700 US product categories worth C$27.6 billion, with duties set at 15% to 50% starting September 8.
USD/CAD edged lower on Tuesday, trading around 1.3834 after pulling back from an intraday high of 1.3867, as traders weighed a weaker US Dollar alongside renewed trade tensions between the United States and Canada, according to FXStreet.
Canada said it would impose retaliatory tariffs covering C$27.6 billion worth of US goods, with duties ranging from 15% to 50% applied to roughly 700 products starting September 8. The measures follow the US decision to impose 50% tariffs on a similar value of Canadian imports after trade negotiations collapsed.
FXStreet also pointed to market and technical signals that keep near-term pressure on the pair. The newsletter cited USD/CAD holding below a cluster of resistance levels, including the 200-day simple moving average near 1.3843, while the 38.2% Fibonacci retracement around 1.3971 and multiple higher levels define a broader sell zone.
On the downside, initial support was flagged near the 61.8% Fibonacci retracement at 1.3803, with a break below that level exposing lower retracements including 78.6% near 1.3684 and the 100% retracement around 1.3531. FXStreet said that a daily close back above the 200-day SMA near 1.3843, followed by recovery toward levels near 1.3887, would help ease the immediate bearish bias.